What is Merck's plan to address declining sales of its HPV vaccine Gardasil?

Merck plans to cut jobs and reduce its global real estate footprint as part of a $3 billion cost-reduction strategy by 2027, and reinvest the savings into the development and launch of new medicines.

How has Merck's revenue and stock performance been affected by the challenges it faces?

Merck's revenue declined by 2% year-on-year in the second quarter, and the company's stock price has dropped by over 30% in the past 12 months amid growing investor concerns about its future after its top-selling cancer drug Keytruda faces increasing competition.

What is the impact of the trade agreement between the US and the EU on Merck's business?

The announcement of a trade agreement between the US and the EU, which established a 15% tariff on most EU imports into the US, including pharmaceuticals, has added to the challenges faced by Merck.

Home / Business and Economy / Merck to Cut Jobs, Lower 2025 Revenue Forecast Amid Vaccine Sales Decline

Merck to Cut Jobs, Lower 2025 Revenue Forecast Amid Vaccine Sales Decline

29 Jul

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Summary

Merck to cut jobs as part of $3 billion cost-reduction plan by 2027
Merck lowers 2025 revenue forecast amid declining sales of its HPV vaccine
Merck plans to reinvest savings into new medicines development

Merck to Cut Jobs, Lower 2025 Revenue Forecast Amid Vaccine Sales Decline

Merck, the US pharmaceutical giant, has announced a major restructuring plan that will see the company cut jobs as part of a $3 billion cost-reduction strategy by 2027. The company cited declining sales of its HPV vaccine Gardasil as a key factor behind the move, which has led Merck to lower its revenue forecast for 2025.

In the second quarter, Merck's revenue declined by 2% year-on-year to $15.8 billion, with the HPV vaccine Gardasil seeing a 55% drop in sales due to waning demand in China and increased competition from generic drugs in international markets. To address these challenges, Merck plans to optimize its global operations, including reducing its real estate footprint and further streamlining its manufacturing network.

The company has also announced that it intends to reinvest the savings generated from the cost-cutting measures into the development and launch of new medicines. This comes as Merck faces growing investor concerns about its future, with the company's stock price having declined by over 30% in the past 12 months amid competition to its top-selling cancer drug, Keytruda.

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